Amidst Bitcoin's recent price surge, a puzzling trend has emerged. While such increases typically accompany a rise in network activity, the opposite is true this time. The 30-day SMA of new addresses has plummeted, as has the transaction count. But what does this divergence signify? Is Bitcoin's value truly reflective of on-chain usage? Our analysis uncovers a startling possibility - the potential dominance of speculative trading... But is this the whole truth? Could there be unseen forces at play, shaping Bitcoin's destiny beyond the realm of network activity alone?
![Bitcoin’s price surge not reflected by on-chain activity](https://cryptoslate.com/wp-content/themes/cryptoslate-2020/imgresize/timthumb.php?src=https://cryptoslate.com/wp-content/uploads/2023/10/bitcoin-activity.jpg&w=70&h=37&q=75)
Bitcoin’s price surge not reflected by on-chain activity
In light of reduced on-chain activity, Bitcoin's recent surge in price may be attributable to speculative trading on exchanges.
![Bitcoin’s price surge not reflected by on-chain activity](https://cryptoslate.com/wp-content/uploads/2023/10/bitcoin-activity-768x403.jpg)
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